How to start saving money when living paycheck to paycheck

The best way to start saving money when living paycheck to paycheck is to create a budget. Equally important, live life from a thankful standpoint. This makes you feel like you already have enough.

Likewise, it’s important to start creating new habits and change old habits when you want to start saving money.

Furthermore, it’s important to realize when you are shopping, you are constantly being marketed to. I’ll help you recognize this.

I will share how I started my new financial journey and my biggest money saving tips. Everyone has such a unique financial situation. Not only is every individual different, but different tools work well for some and not for others. Everyone has a different financial background and experience. The key is to find what works well for you to start saving money.

Personal Finances are just that. Personal. If you would like some money saving tips or strategies specifically for your personal finances, I encourage you to get in touch.

My Story

For me, it all started when I was tired of living paycheck to paycheck. Inevitably, I would hear a clunking sound in my car. I could feel the stress building in the back of my neck and shoulders.

Somehow, I would have to come up with more money or put the repairs on a credit card. Learn more about me and my financial journey.

One day I was talking to a great friend about money and she told me to read a book written by Dave Ramsey. I read the book and it was very inspiring! That was almost twenty years ago!

This was when I decided to start saving money and stop living paycheck to paycheck.

Create a budget

Budgeting gives you peace of mind, alleviates stress and increases happiness 

It can be a simple budget or you can get the detailed budget I use.

As you create your budget, you will realize where you are spending your money. Can you cut back or totally cut some items out? This is where you can really start saving money.

I think it’s great to see how much cash you have on hand after subtracting expenses. By adding your income, subtracting your expenses & subtracting your savings will equal your cash on hand.

If you need a helping hand with a budget, contact me. I am excited to help you out.

This really does give you an eye-opening experience into your personal finances.

7 Reasons to have a Monthly Budget

1. You understand your monthly income
2. You are fully aware of your monthly expenses
3. You know how much money you are saving each month
4. You know how much money you have left after paying your monthly expenses
5. Your bills do not shock you (you know they are coming)
6. Review recurring expenses you don’t need/want anymore and cancel those services.
7. Maybe an expense seems too high. This is a great opportunity to start shopping around to see if you can get a better price.

If you’re not convinced yet, read 6 Motivational reasons to create a budget to inspire you.

Change Old Habits

If you were like me, in my early 20’s, you have been spending without a plan. To illustrate, you want a new iPhone. You head to the store or shop online and start realizing how nice it would be to own a new phone.

Especially with all the new features! You can’t even imagine your life without this awesome iPhone.

You want it so deep-down to your toes, you start justifying why you should make the purchase.

You are so excited and amazed at what this new technology can do! You just have to have it!

Finally, you are trying to figure out how to pay for this phone. To clarify, you do not have $1,000 to buy the Iphone. For this reason, you find yourself filling out an application to make monthly payments so you can have this iPhone.

You are so excited! Your friends are going to think you are so cool. Not to mention, it’s going to make your life so much easier. Right?

Nope. Now, you have to think about how you are going to afford these payments in the future. UGH!

Create New Habits

Don’t think about the things you can’t have.

First of all, when you really want a new iPhone and cannot afford it, don’t waste your time daydreaming about them. Definitely, don’t run to the store or look at all the features and benefits online.

Doing so, will cause you to feel inadequate and frustrated because you know you can’t afford it. If you are like me, it would just make me feel sad.

When you want to start saving money, you need to create a new way of thinking. Each day you should be thinking, how can I save more money.

Be Thankful for all the things you do have.

When we are thankful for the things we have, it creates peace in our lives. This is living in a place of abundance rather than scarcity. Which means being thankful for everything you do have instead of wanting more.

Look around your home and find things you really wanted to have at one point in time. Remember how important it was for you to have it?

Now, say out loud “I am thankful for (something you have)”. Do you notice how calming it is? Can you feel tension being relieved? Are you smiling?

I think this is really powerful for relieving financial anxiety/stress.

When you are thankful for the things you have, you save money by enjoying them.

Create a menu for the week

An easy way to save money on a weekly basis, is to create a menu for the week. For instance, include everything you want to eat, like breakfast, lunch, dinner, snacks and dessert.

Not only does this process make your life easier for the week, it also saves time running to the grocery store several times per week. It also alleviates trying to figure out what to make for dinner on a daily basis.

Ultimately, by making a menu, you will be saving money. After all, you will not have to run to the restaurant when you are really hungry.

Create a Grocery list

Before you head out to the grocery store, make a list of all the items you will eat in a week.

First thing is to go through your recipes and note all the ingredients you need. For instance, if you don’t have some ingredients add them to your grocery list.

Here’s the big challenge: When you get to the store, stick to the list (unless you really need something like milk!)

If it’s not on the list, be hesitant to buy it. Especially, if it’s junk food or pre-packaged dinners.

Remember, you planned out all your meals, snacks and deserts. To emphasize, you have everything you already need on your list.

This really does take some self-determination!

A point often overlooked, is to never go to the grocery store hungry! This helps me every time!

Generally speaking, you will be saving money by creating a grocery list and eating before you go to the grocery store.

Create a Shopping list for Personal Items

Making a list before heading to Walmart, Target or Costco can save you a lot of money. Especially when you choose to only purchase the things written on your list.

When you walk into the store, they are marketing you right away.

They have professionals set up their stores geared toward marketing. This marketing is to get you to buy as much as they can.

Do you ever notice, when it snows, the shovels and ice removal products are positioned right when you are entering? This is on purpose!

The candy, bottled water & pop is positioned so you will make one last purchase before paying and leaving the store.

Marketing is very interesting to me, so I notice these things right away. Do you?

Given these points you will save money if you stick to your shopping list!

Mark it on the Calendar!

On the days you don’t spend any money, put a smiley face on the calendar. This serves as a reminder and reward that you are in saving mode. On the positive side, it will help you to stay on track.

Limit Dining out

To point out, eating fast food and dining out is expensive. Take a look at your previous month’s spending and add up all the times you ate out. It may surprise you. Certainly, it still surprises me.

Clearance Shopping

I used to love shopping the clearance sections! I thought I was getting such a great deal AND thought I was saving a lot of money.

The bigger problem was I was spending more money. As a result, I was spending money in my budget that I didn’t plan to spend. Consequently, creating a bigger problem for debt.

Another big shopping expense is Christmas. Check out my article on the best way to budget for Christmas.

One Last Thing

Everybody has their own personal strengths and weaknesses when it comes to saving and spending. Changing our behavior and habits along with creating a picture of our new financial future has a big impact on our lives.

There are so many different ways to save money.

If you are interested in getting advice for your own personal situation on how to change your spending habits, save money and ultimately change your financial future, you can contact me.